MSE News: Lloyds Banking Group stops selling PPI

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"Lloyds TSB, Halifax and Bank of Scotland customers will no longer be pressurised into taking the controversial cover ..."

Read the full story:
Lloyds Banking Group stops selling PPI

wizk1

Hoorah! Now lets watch them make up for the missing revenue by other means.

di3004

http://www.moneymarketing.co.uk/protection/lloyds-scraps-ppi-sales/1015800.article

Lloyds scraps PPI sales:

Lloyds Banking Group has stopped selling payment protection insurance across all five of its brands.
A report on MoneySavingExpert.com reveals that Lloyds stopped selling PPI through its Lloyds TSB, Halifax, Bank of Scotland, Cheltenham & Gloucester and Black Horse brands with effect from July 23.

Lloyds is instead offering customers a leaflet on PPI from the British Bankers’ Association.
The bank has promised not to raise loan and credit card rates to replace the income it would have received from PPI sales.
Existing customers who have taken out PPI policies with Lloyds will be unaffected.
The bank will honour PPI applications on loans and credit cards until July 31, and on mortgages until November 20 but is no longer receiving new applications.
MoneySavingExpert.com creator Martin Lewis says: “This is a quite astonishing move. This insurance, which has been scandalously mis-sold for years leaving many consumers in misery, is estimated to be worth up to £5bn a year for the industry.
“We hope the other big banks follow suit.”
The Competition Commission ruled in May that it would continue with its plans to ban point-of-sale PPI.

magpiecottage

This doesn't change the fact that PPI, particularly for loans secured on your home, does have a place if you are eligible for it.

It just means you can shop around for it - it is generally cheaper on the open market anyway but make sure it gives you the cover you want.

bat-out-of-hell

Now....lets see if they admit to forceing black widow life insurance on those that refused PPI because an existing condition meant it would never pay out, and im going back quite a lot of years now.

PPI is only the tip of the malpractise iceburg.:mad:

payless

why scrap it?
why not offer it at a reasonable price to those that want it... and remove the sales targets.

Could we see a problem happening when the banks have no interest in it ( just get handed a leaftlet) , could it be said that prudent lending needs more of a discussion on this point with a client.

Mr_Creosote

So much for all the whoops and cheers over the demise of PPI, but where can you get a standalone policy from if you want one? Most of the brokers I've spoken to say that you can't get a policy these days unless you've taken a new mortgage recently or link it to life cover. As someone who is concerned about redundancy income protection is no good as that only tends to cover accidents and sickness. Has a perfectly good (albeit often grossly mis-sold) product been killed off by media hype?

mrmajika

As an LTSB shareholder, i'm delighted, as, strangely enough, the share price has increased by nearly 9% today.

dunstonh

So much for all the whoops and cheers over the demise of PPI, but where can you get a standalone policy from if you want one? Most of the brokers I've spoken to say that you can't get a policy these days unless you've taken a new mortgage recently or link it to life cover

Most local IFAs have access to these plans. Very few are actually linked to life plans although some life plans do have that option.

allsmiles

Just type mortgage payment protection into Google and you will find some.

marshallka

Gavin_smith wrote: »

HelpUCover comes highly recommended for Mortgage Payment Protection Insurance, and was voted Best
MPPI provider for 4 years in a row! Great service and very competitive. helpucover.co.uk

Not for me. We were over insured and are in the process of trying to reclaim it back as it was of no use whatsoever. They are good on the phone when you are about to BUY a policy and although we have never had the misfortune of having to claim on this policy (although we never would have been allowed without our other policy being affected) we have had to make a complaint and I have to say this is the worst company I have ever dealt with. Certainly not recommended by me. They trade under Cardif Pinnacle and lots of complaints on the web out there.

Do you work for them by any chance???